Securities of Azerbaijani Finance Ministry attract demand at auction

By Trend

Baku Stock Exchange (BSE) held an auction on placement of medium-term government bonds of Azerbaijan’s Ministry of Finance worth 20 million manat ($11.7 million), Trend reports referring to BSE.

The interest payment term is 728 days.

During the auction, ten investors submitted 15 bids in the price range from some 88 manat ($52) with a yield to maturity (YTM) of 13 percent to 93.49 manat ($54.994) with the YTM of 6.99 percent per bond.

According to the decision of the Finance Ministry, the cut-off price of bonds amounted to 93.4916 manat ($54.995) with the YTM of 6.99 percent, and the weighted average price was the same – 93.4916 manat ($54.995) with the YTM of 6.99 percent.

The total amount of orders at nominal prices amounted to 71.1 million manat ($41.8 million), and the placement volume – 20 million manat ($11.7 million).

The maturity date of the bonds is Apr. 20, 2021.

Bidders must fulfill their obligations to acquire bonds until Apr. 22, 2020.

Baku Stock Exchange cooperates with a number of leading international financial institutions. In light of integration of the Azerbaijani economy to the global economy, effective management of capital markets in accordance with modern requirements, application of international standards, as well as the establishment of international relations with leading stock exchanges and financial institutions is of great importance for the Baku Stock Exchange.

(1 USD = 1.7 AZN on Apr. 21)